PayPal Money Market Fund, Is It Safe?

@cuttyrish (2668)
United States
June 18, 2009 3:16am CST
I just read somewhere that you could earn interest rates for your money in paypal for US paypal accounts. Is this safe? have you tried it? I tried to use it, but it's paypal is asking for my Social Security Number, i didn't open one because i am hesitant to put my SSS number... Why does Paypal need the SSS number? I heard that paypal will need this to report to IRS...i do not know more about paypal money market fund safe?
1 person likes this
3 responses
@firemom31 (599)
• United States
6 Jul 09
I have had a PP money market fund for about three years and I'm very pleased with it. They pay dividends once a month. Even though I despise PP in general and consider it a necessary evil, their money market is a nice way to earn few cent a month.
@owlwings (42100)
• Cambridge, England
18 Jun 09
PayPal are a reputable company and there should be no problem with giving them your SSN. I believe that, by law, US companies have to make returns to the IRS if they are paying out more than a certain figure annually to individuals and companies (other than employees). This probably means that they need your SSN on file both to verify that you are a US citizen and also so that they can make the necessary returns if the amount of interest you earn is greater than the minimum amount. Whether the fund is safe depends very much on what investments are involved in generating the interest rate offered. Since PayPal are a reputable organisation (though NOT a bank) and in the light of the recent economic problems with investments that proved unsafe, I would expect them to have paid reasonable attention to the security of the investments that underpin the savings accounts they are offering. I am not a US citizen, so I am not very familiar with the tax laws as they apply to banking institutions. My information above is based on what little I know about payments to self-employed and independent contractors.
@earnnings (1296)
• India
18 Jun 09
Hi cuttyrish, Yeah even i have heard about the interest that it pays to the balance in the paypal account. But i am not in US so even if it is available i don't have the opportunity of getting interest rate to my balance for paypal account. Social security number is needed for the verification of your presence in the country. So i think there will not be any problem in submitting it. If you hesitate to submit your number then contact paypal team for the alternative. keep smiling and happy mylotting :)